"Telangana State Power Generation Corporation (TSGENCO) has awarded BHEL with an EPC (Engineering, Procurement and Construction) order for setting up a 1,080 MW thermal power plant in the state," BHEL said in a statement.

"Valued at over Rs 5,000 crore, the order envisages setting up a thermal plant at Manuguru in Khammam District of Telangana," it said, adding that the project is targeted to be commissioned in 24 months.

BHEL's scope of work in the project includes design, engineering, manufacture, supply, construction, erection, testing and commissioning of 4x270 MW thermal sets on EPC basis.

The key equipment for the contract will be manufactured at BHEL's Trichy, Hyderabad, Haridwar, Bhopal, Ranipet, Bangalore and Jhansi plants, while the company's Power Sector - Western Region will be responsible for civil works and erection and commissioning of the equipment.

TSGENCO has also entered into a preliminary agreement with BHEL for construction of new thermal power plants totaling 6,000 MW in the state.

All these power plants are expected to commence generation within the next three years to meet Telangana's increasing demand for power.

In December 2014, TSGENCO had placed an order for Bhel to set up Telangana’s energy efficient and environment friendly supercritical thermal power plant also on EPC basis, at Kothagudem.